Visma to snub Amsterdam for London IPO in rare win for Britain’s stalling market
Norwegian software giant Visma has provisionally selected London over Amsterdam for its upcoming IPO, a rare win for the UK’s shrinking public markets as the country battles to remain a viable home for high-growth tech listings.
The €19bn firm – backed by British private equity firm Hg – has chosen the capital because of its deeper capital markets and a larger pool of investors focused exclusively on UK equities, reported the Financial Times.
The listing, expected early next year, remains conditional on the UK government and stock exchange delivering on long-promised reforms to make London more attractive for companies looking to go public.
That includes measures like enabling euro-denominated shares to be included in FTSE indices.
Visma’s private equity growth
Visma, which provides accounting and payroll software to SMEs across Europe, has been owned by Hg since 2006, when it was taken private at a valuation of around £380m.
The UK-based buyout house has since reinvested in the business via newer funds, while gradually reducing its stake through sales to institutional backers like Singapore’s GIC and US firm TPG.
Hg and its co-investors still hold around 70 per cent of the business.
The company pulled back from a potential 2023 IPO in favour of a private share sale to the likes of Jane Street and Altaroc, valuing Visma at €19bn.
But insiders say its scale – underpinned by 350 bolt-on acquisitions and €2.8bn in revenues last year – now makes a full IPO the most logical next step. Pre-tax profits hit €185m in 2023.
London’s moribund IPO market
The UK’s main stock market has come under mounting pressure in recent years.
A steady stream of high profile firms have chosen New York’s Nasdaq or accepted takeover offers over remaining in London.
In 2023, 88 firms delisted or relocated their primary listings – while only 18 took their place.
Still, Visma’s decision stands in contrast to growing scepticism from the tech industry.
At London Tech Week earlier this month, Markus Villig, chief executive of ride-hailing firm Bolt, cast doubt on the appeal of a London listing. “Let me look at the IPOs that have happened in the UK over the last five years”, he said, “how many of them are left?”
Villig pointed to weak post-IPO performance, low liquidity and dwindling investor appetite for tech equities across Europe, adding that “US daily trading volumes are about 10 times” higher.
London’s tech ecosystem has also been dented by recent exits like Deliveroo and cybersecurity firm Darktrace.
Yet, the city continues to lead Europe in AI investment, raising $3.5bn last year – ahead of Paris and Munich – and has drawn commitments from firms like BioNTech, which recently pledged £1bn for a new London AI hub.
Bank pitches for the Visma listing are expected to begin this week.